Foxconn plans EV manufacturing unit in India
Foxconn is planning to setup an electric vehicle manufacturing unit in India. The company would prefer to setup its facility in Maharashtra but may also consider Tamil Nadu as the southern state offers benefits for automobile manufacturers. Foxconn is currently discussing the options with four states and it might take some time to finalize the location. It is still not clear if Foxconn will be offer contract manufacturing services to different companies or it would be a joint venture with a single automobile brand. Foxconn currently manufactures Apple iPhones in Tamil Nadu.
Foxconn’s facility will the focused on manufacturing electric two wheelers and the company is also keen on producing EV components in India. Foxconn chairman Young Lio met Prime Minister Narendra Modi during his 2022 visit to India and it is quite likely that the BJP government will offer additional incentives to the company to setup EV manufacturing in India.
Foxconn is currently having a tie-up with Ather Energy and Ola Electric. The Indian delegation will visit Taiwan soon to discuss the options for EV manufacturing with higher executives. The report was first published by ET and Foxconn has not responded to the report.
In 2022, the company also announced a joint venture with Vedanta to produce semiconductors in India. The Indian government has been pushing for semiconductor production in India in the recent years.
Foxconn is the largest contract manufacturer for Apple and the company is now looking to expand in mobility segment. Electric vehicles are the future and we might see some of the best companies in technology space, jumping into manufacturing of components for electric vehicles. The demand for semiconductor chips has been growing fast and many automobile companies had to halt EV production for few weeks due to non-availability of chips. Semiconductor and auto component manufacturers are ready to face the challenger and are looking for ways to improve their production capacity.